While many business owners continue to grapple with the effects the CoronaVirus Pandemic has had on their business, there may be some relief in sight from the Internal Revenue Service (IRS).
The IRS has extended the deadline for Filing and Payment Federal Income taxes to July 15, 2020. They are also offering additional tax help for businesses affected by coronavirus (COVID-19).
Below are some helpful links with more information on tax help for Businesses Financially Impacted by COVID-19:
Employee Retention Credit
The Employee Retention Credit is a refundable tax credit against certain employment taxes, equaling to 50%, of qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.
Paid Leave for Workers
The Families First Coronavirus Response Act gives all American businesses, with fewer than 500 employees, funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members affected by CoronaVirus.
Independent Contractor or Employee
It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors to determine if you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax
The IRS also provides helpful webinars, videos and other materials to help identify the best course of action for your small business needs:
- Small Business Taxes: The Virtual Workshop: Everything a new business owner needs to know to help you meet your federal tax obligations.
- IRS Video Portal for business: Contains A-Z information for business owners and self-employed individuals in a video format.
- Small Businesses TCJA Training Materials: The IRS continues to implement the Tax Cuts and Jobs Act (TCJA). This major tax legislation affects individuals, businesses, and tax-exempt government entities.